Fall from Grace: Batista Gets 30-Years for Corruption

By Brad Brooks
Thursday, July 5, 2018

Eike Batista, the former mining and oil magnate who was once Brazil's richest man, was convicted and sentenced to 30 years in prison for bribing Rio de Janeiro state's disgraced ex-governor, according to a court document published on Tuesday.

Batista's conviction and sentencing by federal judge Marcelo Bretas are the latest in a wave of graft investigations that have sent scores of powerful businessmen and politicians to jail.

The eccentric former billionaire's meteoric rise and fall mirrored the recent fortunes of Brazil, where the commodities boom faded as his energy, mineral and logistics empire fell apart earlier this decade.

His swashbuckling attitude and confident forecasts of a prolonged golden era for Brazil evaporated just as Latin America's largest economy suffered its worst recession on record.

Batista, whose legal team said he would appeal, was found guilty of paying a $16.5 million bribe to former Rio governor Sergio Cabral, who also was found guilty in the case.

Batista's companies won state contracts in exchange for the bribe, including one awarding his consortium the rights to run Brazil's temple of soccer, the Maracana in Rio, the stadium where the 2014 World Cup final was played and the 2016 Olympic Games' opening and closing ceremonies were held.

The bribes were also linked to the construction of the $3.7 billion Açu port facility, controlled since 2013 by Prumo Logistica, which is majority owned by U.S.-based EIG Energy Partners.

Prosecutors said Batista paid a quarter of the bribes to Cabral in cash and the rest in shares of state-led oil company Petroleo Brasileiro SA, miner Vale SA and drinks company Ambev SA, a unit of Anheuser Busch Inbev NV.

Batista was last year fined 21 million reais ($5.4 million) for trading shares based on insider information about shipbuilding company OSX Brasil.

Tuesday's ruling was the sixth corruption conviction for Cabral, who has been sentenced to over 120 years.

Six years ago, Batista, 61, had a net worth exceeding $30 billion and ranked among the world's 10 richest people, according to Forbes magazine, and he had declared he would soon top the list.

He sat atop EBX, then one of the world's most expansive industrial conglomerates, with units ranging from oil and shipping to entertainment and beauty care.

However, Batista made massive bets on offshore oil plays that did not pan out and the extension of a commodity boom that fizzled as he inflated investors' hopes.

(Reporting by Brad Brooks Additional reporting by Ricardo Brito in Brasilia Editing by Bill Trott)

Categories: Offshore Offshore Energy Legal Government Update

Related Stories

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Velesto’s Jack-Up Rig Up for Drilling Job Offshore Vietnam

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Eco Wave Finds Partner for Wave Energy Project in India

Current News

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com